Universal Life Insurance

Universal Life Insurance Policies

When you are making plans to prepare for the end of life, you may be taking a closer look at universal life insurance and wondering what it is. This is a type of policy that can provide you with many benefits, and it generally may be more advantageous for you because of these benefits. However, it also may have a higher premium than other coverage options because of the benefits. By reviewing what you can expect from a universal policy, you may see why this is a great coverage option for you.

With a universal life insurance policy, you will be able to select the amount of death benefits that you want associated with your policy. In the event that the named insured passes away due to a cause that is covered by the policy, the beneficiaries will receive the amount of the death benefits. The death benefits may be used to pay for medical bills, supplement lost wages and more at the beneficiary's discretion.

Another benefit associated with a universal life policy is that the policy will accumulate cash value. With each premium payment that is made, the balance of the cash value will grow. Generally, these policies also earn interest to further promote growth. Because of this, a universal policy may be viewed as a type of investment. The funds may be borrowed from the account as needed for any reason.

These policies generally will remain active until they are cashed in, canceled or the insured passes away. There is not a term that is tied to them. This means that the coverage could remain in place until the end of life, and this makes it easier for an individual to plan for the end of life.

Planning for the end of life can be a challenge, but a universal life policy may be ideal. You can determine how high you desire your death benefits to be, and you can begin exploring some of the different universal life policy options available to you.